Sujatha Pugazendhi, Chennai vs Adit Cpc, Bangalore on 6 April, 2023
4. The first issue that came up for our consideration from
grounds of appeal filed by the assessee is disallowance of
belated payment of employees contribution to PF& ESI
amounting to Rs. 1,87,698/- while processing return of income
u/s. 143(1)(a) of the Act. The ld. Counsel for the assessee,
referring to provisions of section 143(1)(a)(iv) of the Act,
submitted that the AO, CPC ought not to have disallowed PF &
ESI contribution while processing return of income u/s.
143(1)(a) of the Act, contrary to procedure laid down by the
:-5-: ITA. No: 113/Chny/2023
CBDT for processing return of income. He, further submitted
that the disallowance made by the AO towards PF & ESI is
neither expenditure debited into P&L account nor in income as
prescribed under sub clause (iv) of section 143(1)(a) of the
Act and thus, the question of disallowance does not arise.